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Inefficient Govt: Bureaucracy, Corruption and Unskilled Workforce hindering Economic Growth in Pakistan: GCI, World Economic Forum

Global Competitiveness Report, edited by Professor Klaus Shcwab released on 26th September, 2017 has elevated Pakistan’s ranking in Global Competitiveness Index to 115th position up from last year’s 122nd rank.

The report mentions that, South Asia has improved competitiveness across the board, in particular in the two Himalayan countries of Bhutan (82nd, up 15) and Nepal (88th, up 10). On a similarly positive trend, Pakistan (115th, up seven) and Bangladesh (99th, up seven) have both improved their scores across all pillars of competitiveness.

The Report highlighted that South Asian region continues to struggle with upgradation of ICT (Internet, Communications & Technology) Infrastructure and increasing ICT continues to remain as the biggest challenge in the region. Over the years, the report mentioned, South Asia’s technological readiness remained stagnated same as that of the Sub Saharan Region.

Historical GCI Trend – Pakistan

 

 

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

Rank

124/144

133/148

129/144

126/140

115/138

122/137

Score

3.5

3.4

3.4

3.4

3.5

3.7

 

The Global Competitiveness Index uses a methodology which takes into account any given economy’s basic requirements; Institutions, Infrastructure and macro level elements, Pakistan’s performance on providing basic resources has been abysmal, ranking at 115, Pakistan’s position is well behind some of the civil war torn countries like Libya.

Efficiency Enhancers, the factors which help analyze an economy’s effectiveness and efficiency in operations with respect to market size, labor and goods markets, and education & training takes into account future outlook and current snapshot of the progress of economy. Pakistan ranks 104th in the world in Efficiency Enhancers category, helped by higher ranks in Market Size and Financial Market Development heads whereas education and labor market trailing behind at 120 and 128 on the table.

Third factor considered to carry out the analysis is Innovation and Sophistication Factors; Business Sophistication and Innovation, which attempts to gauge how conducive the economy is to welcome and accept innovative developments and back them financially in order to minimize costs and increase efficiency. Pakistan's rank is much better as more and more Millennials continue to adopt digital infrastructure and connectivity infrastructure and reach improves in the country,

Index Component

Rank/137

Score (1-7)

Global Competitiveness Index

115

3.7

Basic Requirements:

114

3.7

Institutions

90

3.5

Infrastructure

110

3.0

Macroeconomic Environment

106

4.0

Health and Primary Education

129

4.1

Efficiency Enhancers

104

3.7

Higher Education & Training

120

3.0

Goods Market Efficiency

107

4.0

Labor Market Efficiency

128

3.4

Financial Market Development

96

3.6

Technological Readiness

111

3.0

Market Size

28

4.9

Innovation and Sophistication Factors

72

3.6

Business Sophistication

81

3.8

Innovation

60

3.4

 

Highlighting the most problematic factors in the country, the report put Inefficient Government Bureaucracy, Corruption, and inadequate educated workforce in the top three. These rankings were generated by asking respondents to the World Economic Forum’s Executive Opinion Survey, who are asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. These scores were generated by taking a detailed survey with the Executive audience of companies and businesses operating in Pakistan.

Posted on: 2017-09-27T10:52:00+05:00
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